Reasons for Differences in Pay
- Workers are paid different amounts (wage differentials) due to a number of factors, including
- Gender pay differences
- Industrial sector pay differences
- Private & public sector pay differences
- Differences in pay between skilled & unskilled workers
Reasons for Wage Differentials Between Men & Women
- Men usually work full-time whereas women often work part-time in order to meet the demands of motherhood/childcare
- Men usually have an uninterrupted career journey whereas women often take time away from work (motherhood/family) & so miss opportunities for advancement
- Women are more likely to accept a job below their skill or quantification level if it fits in with the needs of looking after their children
- The gender pay gap is a form of discrimination & occurs when a women is paid less than a man who is doing exactly the same job
Reasons for Wage Differentials in the Primary, Secondary & Tertiary Sectors
- Primary sector workers are usually paid low wages due to the unskilled nature of the job & the fact that raw materials often generate the lowest profits in the production chain
- Secondary sector workers add value to the raw materials & these products sell for higher profits. Therefore wages tend to be higher than primary sector wages
- Tertiary sector workers are paid the highest. Their jobs often require highly valued skills that take years to acquire & the products they sell or services they provide can be complex & expensive e.g. artificial intelligence coders
Reasons for Wage Differentials Between Private & Public Sector Workers
- Public sector organisations are owned & controlled by the Government
- Private sector organisations are owned & controlled by private individuals & firms
Reasons for Wage Differentials Between Private & Public Sector Workers
Private Sector Workers |
Public Sector Workers |
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Reasons for Wage Differentials Between Skilled & Unskilled Workers
- Many economies have a high supply of unskilled labour. This means that employers can push wages down as there is always someone willing to work for less (take it or leave it approach to wages)
- To become skilled takes time & money which means that there is a more limited supply of specific skillsets. In recognition of these factors, wages for skilled workers are higher
Exam Tip
This topic is often examined in Paper 2 structured questions. A favourite approach is to ask a 'discuss' question which focusses on one area, but requires you to have knowledge of the other areas in order to fully answer the question.
For example: Discuss whether younger workers are always paid less than older workers
- Often they are because they are less skilled, lack experience etc.
- On the other hand, young workers may be highly trained in new technologies which are driving growth in the tertiary sector & they will be highly paid
Remember to let the infromation in your case study lead the points that you are making in your argument